Asian stocks jumped on Monday as China’s central bank changed the way a key interest rate benchmark is set.
Asian stocks
Analysts have seen this change as reducing borrowing costs for companies. According to People’s Bank of China, this means that will prop up the country’s economy and the central bank introduced a plan intended to lower borrowing costs for companies.
In other news here are some of the changes:
The 10-year U.S. Treasury yield held at 1.582%, having pulled away from a three-year trough of 1.475% marked last week in the wake of global slowdown fears.
“This week’s main event is the Jackson Hole symposium and Fed Chairman (Jerome) Powell’s speech,” said Junichi Ishikawa, senior FX strategist at IG Securities in Tokyo.
Powell will deliver a speech on Friday at an annual meeting of central bankers in Jackson Hole, Wyoming.
“What Powell has to say is in focus as the discrepancy remains between what he said on interest rates and what the markets have come to expect the Fed will do,” Ishikawa said.
The euro was steady at $1.1092 while the Australian dollar was effectively flat at $0.6780.
The dollar index hovered near a two-week high of 98.339 climbed on Friday.
The Brent crude oil futures gained 1% to $59.22 per barrel.
